Strong new orders is a good sign for the region. The improving job situation means wage increases and that should support stronger consumption.
Tim Condon
There were no exports (growth) in 2001 either and we expect that pattern to continue in 2003
growth
China's trade surplus has become a structural feature of the economy, so while political pressure may grow, the economic argument for a stronger yuan is weak
pressure political grow economy argument weak trade
Chinese producers will remain competitive in a wide range of manufactured products for some time.
products time chinese
If the US dollar remains firm, then flows looking for an appreciation of the yuan will remain at their 2005 levels or lower and we're forecasting a more or less unchanged trade surplus.
appreciation trade
Both were in recession last year and the recoveries there have not been particularly strong yet
strong recession
There's been very strong growth balanced between domestic demand and exports and falling inflation - a very satisfactory outcome from the point of view, I would suspect, of the policy-maker.
growth strong falling demand inflation view
good strong improving support job situation consumption sign
The rating agency actions have reinforced a message to investors that fiscal consolidation in both countries is a trend and will drive asset prices higher. So markets are reacting to this.
actions drive message agency
While the economy is booming, the slowdown in investment growth must be seen as a welcome sign.
growth economy investment sign
Investors are conditioned to see politics-induced pricing weakness as a buying opportunity and our base case is that this time will prove no different. Still, this is shaping up as an exciting week.
opportunity weakness time exciting
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